1Derrick US M&A weekly update

1Derrick gives OGFJ readers a snapshot of oil and gas industry M&A activity for the week of May 22 to May 26.

 

US announced deals YTD

US deals in play*

Region

Value ($MM)

Count

Value ($B)

Count

Permian

$17,621

131

$7-$8

17

Mid-Continent

$1,026

27

$4-$5

12

Gulf Coast

$5,271

26

$3-$4

7

Rockies

$3,617

23

~$5-$6

13

Ark-La-Tex

$49

11

$2-$3

5

Eastern

$2,033

13

~$2-$3

9

Gulf of Mexico

 

3

~$11

12

Alaska

-

-

-

-

West Coast

$335

8

<$1

1

Multi Region

$86

3

<$1

1

Total

$30,038

245

~$37

77

Source: 1Derrick’s Global M&A Database (www.1Derrick.com)

*Only includes packages valued >$100 million

Deal flow
Upstream

  • Linn Energy Inc. (reorganized successor to Linn Energy LLC) has entered into an agreement to sell a portion of its assets in San Joaquin basin for $263 million. The transaction includes ~500 net acres in South Belridge field in Kern Co., CA, with net Production of 3 MBOE/d during Q1-2017.
  • The Carlyle Group has entered into a drilling joint venture with EOG Resources to fund the drilling program of EOG’s existing acreage in Ellis Co., OK, in the Anadarko basin. Carlyle will fund the drilling program by investing ~$400 million over a period of four years.
  • Tesoro Corp. has entered into a drilling joint venture (JV) with EP Energy Corp. to fund the drilling program of 60 wells in EP Energy's Altamont program in Uinta basin. Tesoro will provide a capital carry in exchange for 50% of EP Energy's 80% interest in the JV wells.
  • Abraxas Petroleum Corp. has entered into an agreement to acquire bolt-on Delaware basin acreage from Devon Energy for $22.2 million. The transaction includes 2,008 net mineral acres in Ward Co., TX, with Production of 198 Mcfe/d or 33 BOE/d.
  • On 24-May-2017, Quantum Energy Partners announced that it formed Middle Fork Energy Partners with an initial capital commitment of ~$200 million. Middle Fork seeks to acquire, develop, and operate properties in the Rocky Mountain region.

Deals in play

  • Apache Corp. has retained Bank of America Merrill Lynch to assist in the sale of certain acreage in Southern Delaware basin. The assets cover 11,500 net acres in Pecos Co., Ward Co., and Reeves Co., TX.

Midstream

  • Crestwood Equity Partners has agreed to drop down its Willow Lake gathering and processing assets in the Delaware basin to Crestwood Permian Basin Holdings (CPJV, a 50-50 JV between Crestwood Equity and First Reserve). As per the agreement, First Reserve will fund 100% of the initial capital requirements during the early stage build-out of the Orla expansion, after which Crestwood will fund the remaining requirements until both parties have made equal contributions and the contribution of the Willow Lake assets valued at $151 million will be credited as part of Crestwood Equity's capital requirements for the project.

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